Custom SPfilter – November 12th

For this week’s content analysis we’re providing the structure and results of a custom filter we’ve built. The filter uses exactly the same criteria as the one we sent you previously this year, on May 27th. This filter puts an emphasis on three key evaluation areas:

1. Generation of shareholder wealth (EVA/Share, Economic Performance Index, return on capital

2. Growth (short and mid-term growth of EVA/Share, dividend growth in each of the past four years)

3. Free Cash-Flow provision

As of November 12th, the group of stocks that were identified by this filter on May 27th (equal-weight) generated a positive return of 3.39% while the TSX Composite Index dropped by 12.06%. To see this previous blog post, please click here.

Only 1.5% (14 of 911) of our Canadian stock universe meets our stated criteria.

The results are sorted by Economic Performance Index (EPI). We’ve included a few other indicators for reference—see share price, Price/Earnings, current 12-month dividend yield.

In the attached PDF document you’ll find both the contents and criteria inputs for the filter, as well as the 14 resulting companies which passed these criteria.  Download